only 600 prius sold in the first three quarters, leaving us with the number one electric car in the u.s., yeah, you got it, the always controversial chevy volt which does not make this noise. get this, the best selling car has just 13,000 sales. that's the best selling one. that's the one that does really, really good. the car is constantly a disappoint dollars. that is it for next "the willis report." thank you for joining us and i wish you and your families all have a very, very merry christmas. have a great night. lou: good evening, everybody.

obama administration's collectible middle east policy. egypt right now on the grip of the worst political crisis since the fall of the president two years ago. and in syria, increasingly desperate measures to counter an insurgency that is slowly but surely pushing closer to control of the capital city of damascus. we will take all that up there with the fox news military analyst, new intelligence report that concludes america's time as the lone superpower is nearing an end. john negroponte joins us to discuss our nation's future as a superpower and the challenges we surely face. and president obama ignoring immigration reform in the first term only a matter of time before he makes new proposals should republican party takes the lead on the issue. when will it be enough to lure

latino voters in that is their purpose. egypt is worsening. clinical crisis shows no signs of easing as the new muslim brotherhood leadership tries to silence opposition. so far the obama administration is trying to play both sides respecting the countries efforts at democracy at least in the opinion of the administration, meanwhile predicting individual freedoms. but how it will all play out is uncertain. loyal to the regime are using scud missiles. the move representing a sharp escalation in the two-year-old conflict at which more than 40,000 people have been kled.

he could use chemical weapons against his own people. still, world powers remain deadlocked on how to resolve this crisis. noticed it, europe and arab nations are calling on a side to step down, loo but russia, chind iran continue to back assab. it states may well lose his status as the world's sole superpower by 2030. according to new report from the nationalst intelligence council. the united states to the obama intelligence rports suggestt wo will be first among equals as asia set to surpass north america and europe combined in terms of global power. joining us now to talk about implications for the foreign policy and wha in what is happen the middle east, john negroponte, the first director of national intelligence appointed by george w. bush serving five times as an investor and in his distinguished career in intelligence and diplomacy. great to have you with us.

>> thank you. lou: let's start with the middle east. president morsi, ordering the military to arrest civilians. what is your reaction? >> i just think it is administration of the precariousness of the situation in egypt, but that situation is critical. we can't afford to see egypt go over some kind of a brink. they are crucial to the middle east peace process. wo perhaps if egypt were to pull back from the recognition of israel, the largest arab country population in the region, therev is a critical role to play in many different ways.

lou: the way his administration has engaged the muslim brotherhood, the army and egypt and what the likely result will be, are you optimistic that his diplomacy is on the correct path? >> i think it started out quite seriously, nobody knew what was going to happen when president mubarak was first deposed, but the administration has realized there is no easy fix, no quickpp solution.en we've got to stay close to this and work closely with all the different parties, the presidency, the military, civil society and frankly no real substitute for close engagement by the united states. some people may think we are a declining power in this world, but we are still the most influential country in the world and i think people in the middle east and elsewhere expect us to play a really strongxp role.

lou: there is an extraordinary situation or 4. $4.80 in u.s. ad slated for egypt with conditions now that have arisen since morsi mediated in a brokered an agreement between gaza and the israelis. the same time as announced today 20 m-16s will be shipped to egypt, the beginning of thence month.kere this has a number of the critics absolutely furious.furi your thoughts on that level of engagement, is it correct or is it really high-stakes gambling? >> i think that stresses the point, it seems to me, that we neededse to maintain a good, cle relationship with egyptian military. recall that in past years a couple decades ago when we became disenchanted with the government and military of pakistan, we cut off militaryoff

assistance to the pakistani military and that led to very negative consequences so while some of these choices are very difficult, i am inclined in that direction of greater rather than lesser engagement. i don't think there's any point in just wiping our hands of these situations. lou: you talk about declining powers, does the obama administration's intelligence council in a new report i just referred to talk about the day which the united states will no longer be a superpower but the so-called first among equals.t m they project around 2030. your thoughts and your reckoning on whether or not you agree with that, they will come if not declining of other powers. >> i certainly think since the financial crisis back in 2007, 2008, there has been a tendency

to write this down, if you will, but i think many of those assessmentsit have been unduly pessimistic and even downright wrong at times. we are still the most powerful economy in the world, the most powerful military, and demographically we are quite a healthy nation with the third most populous nation in the world, and we will be evened out to 2050. so the notion that somehow we are going to be eclipsed from the scene is completely wrong. now, there is some truth to the statement that the economic and demographic center of gravity iv the world is shifting toward asia, but it is shifting toward asia away om europe, if you will. and not away from the united states, and that argues for the very policy that thetrat administration has adopted, which is this pivot toward asia cultivating those relationships out there, being mindful of the trade and investment

opportunities with the asia-pacific regioasiapacific rg that and i think that is the right thing to do. lou: john negroponte, thank you for being here. >> thank you, lou. lou: protests turn violentt today. president mohammad morsi dictatorship under threat. at least 100,000 egyptians broke through police lines and iron gates to reach the presidential palace before they were forced back by rioty police. demonstrations signaling momentum for the opposition ofo which put up at least 200,000 protesters last week. the riot the levels of protest in the so-called arab springs of february of 2011 when president mubarak was ousted. joining us now, colonel oliver north, military analyst,t host f "war stories, "the new york times" best seller, heroes proved and great

to have you withr us. congratulations on the new book. i want to get to that in just a moment.o ge i want to get your reaction to what we are watching take place at the presidential palace in egypt. >> the good news is there are 100,000 people lefte in egypt that once the protest of aship dictatorship of sharia. that is what we will see them backing morsi and the regina. number two, to get crushed, the bad n news is they will suppres. this rebellion, they will suppress it with the help of police and the muslim brotherhood thugs trying to make sure at the end of the day them christian movement that used to exist, the church is no longer to be reckonedr with. the secular muslims no longern have a role to play in this governmentrn and that comes down to our disadvantage because we're helping to fund this

government and our only real ally in that part of the world, israel. lou: the reason we continue to fund this government, to continue the policies of which egypt is simply a part, libya as well, the distance from which we have remained from events in syria without a clear-cut of policy, what are your thoughts?e >> the syrian situation has become more serious simply because we haveio evidence that the regime is moving the precursorso and chemical agents in places we may not be able to deal with.no nato took a look at it and said nato will do something about it. as you and i know, nato is toothless to do anything abouto it without the united states that could take upwards of about 50,000 troops to secure the chemical weapons of mass instruction threatening not only the people inside syria but also the neighborhood to include

turkey and all the reason for those missiles coming. lou: are you surprised we're sending patriot missilemi defens systems to the turk quest to mark speak of this has been in brussels for some months.to m the turks have always wanted some means of protecting themselves not simply fromn rockets coming in from syria but wanted to protect themselvesiran from what the iranians are building with the help of course of the north koreans. lou: and we can talk forever about the relationship that is emerging. but i want to talk as we wrap up, want to talk about this new book. set in the future in which youes imagine issues frankly taking place today. >> 20 years from now. i sat down a year and half ago had no idea the terror attack on

those americans would be lied about by an administration that israelm would face the existential threat it hasti tod those kind of things are in this book and of course hopefully a brighter future for america wher we realized what is really happening in the seconda amendment being denied by the united nations, all things this administration is doing inl ths book. by the way, servicemembers serving overseas, buying thisa book, if you want to get a signed copy, go to oliver north.com on the side of the bus in new york next week. lou: loudobbs.com to get a link to oliver north.com as well. lou: the debate about illegal immigration. could a republican ship and illegalu immigration bringn hispanic voters under the republican banner? manhattan institute fellow heather mcdonald our guest here n@a

lou: republicans facing increasing calls for immigration reform following the president's reelection in part of that victory on the part of the president and in the minds of many due entirely toan the suppt of the hispanic voter. exit polls show since a 5% of voters believe most illegalhmost immigrants working in this country should be offered a chance to apply for legal status. 28% say they should be deported. joining us, manhattan institute fellow, heather mcdonald. great to have you with us. >> thank you, lou. lou: your judgment as a matter of policy. what do you think is the appropriate way for publicon policy on the issue of illegal immigration?>> >> i would like to move ourm immigration system toward the skill face qualifications that i

you come and not because you have a family member alreadybu here but because you have skills of the american economy needs and the language. with regard to legal immigration, think the rule ofn law is remaining the best way oe making sure that people don't come into the country illegally. the risk of an amnesty that is basically all that we are talking about unfortunately is amnesty. every amnesty in the past weather in europe or in then united states has had the effect of attracting more people in the country illegally in the hopes of a future amnesty. lou: years ago i started talking about a rational, humane immigration policy that would take intocy account all of the concerns about displacement of those who were in this country illegally, a due process make a determination of how work permits and legal status occurred. that is not enough.th

the activist groups in this country t insist upon one thing, it is remarkable demand in my eyes, they insist upon amnesty and this president is insisting upon amnesty. what is your reaction? >> what i worry about most is not amnesty, but incredibly successful campaign toma stigmatize any immigration enforcementti whatsoever.ha when you have opposition across the country to a program called secure communities which says if you have committed a crime and you enter a jail, the jailsh authorities should notify the federal immigrationh authorities to your presence, that is now viewed as unfair to legal immigrants, so we can't even penalize criminals. that means even if we say we will give amnesty to everybody here and from this day forward we will start enforcing laws, wr won't.ng l

lou: politically for republicans right now and the tempo and the tone of the conversation issurp rising, republicans are looking at theo numbers and they're saying despite the fact they didn't even turn out the members they have, this was the lowest turnout in almost 20 years. it is striking, now they say they have got to create diversity.u we will take up the issue of diversity later in the broadcast, but what isour reaction?a should they do that? is there a change i in the attitude of the republican party? >> first of all diversity" is our ridiculous. the best person should move forward regardless.. if republicans believe in amnesty, they should enact amnesty.

the hope that this will deliver significant numbers of current democrat hispanics the republican party i think isis naive because the main reason hispanic support the democratic party is economic policies, not immigration. you have 62% of likely hispanic voters in september poll by fox saying they supported obamacare. this despite the catholic church opposition to the contraception mandate. so much for the social values. they support proposition 30 in california to raise taxes one upper income californians and to raise the sales tax because hispanics remain at the lower level of the economic ladder and they use government welfare programs at a very high rate.t . lou: i welcome this discussion. now being by the republicans one reforming our immigration laws.

but i hope there is not a rush to judgment somehow loses across a vast sea of facts and realities that have been avoided by both political parties. the american people really need to understand what is happening the hispanic community needs to understand what is happening.de the idea that this countryhere should be selecting those of prince and the united states based on their skills or bgo talents, that has to be a tough sell when theug land bridge istt downe south. >> that is white amnesty is very risky because it means that stopping the flow of illegal aliens from that land bridge will be even more difficult. lou: if there is an amnesty, to be the the third in the last 26 years and it will be something to watch.wa >> and we will have it in full, i guaranteeca you. lou: thank you very much.

how much should we pay in taxesm to the government? a prominent economist said we should go back to the times of leave it to beaver and pay up. how does 91% feel to you? how does 91% feel to you? we take it up in the "chalk ally bank. how does 91% feel to you? we take it up in the "chalk why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me whatd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally.

♪ remember when

♪ ♪ 30 seemed so old ♪ now looking back ♪ ♪ it's just a stepping stone ♪ to where we are ♪ where we've been ♪ said we'd do it all again ♪ remember when ♪ lou: new k lou: "new york times" economist columnist is arguing for a return to the 1950s when incomes in the top tax bracket had to pay a marginalh tax rate, are you ready, 91%. herhere's part of what he wroten his column in "the times." america in the 1950s made the rich pay their fair share.

91%. it gave workers the right to bargain for decent wages andy benefits. contrary to right wingogan propaganda, anything that disagrees with him, then and now it is pertinent we can do that again.p so parents as nobel winning economist just once to raise taxes 91% and everything will bd fine. these are really something else. in a class by himself, however. back then we had a responsibler government and responsible economist and even responsible a columnists. in 1955 the middle of the decade, federal spending wasov just over 17% of gdp. 17%. now just about 23% of gdp.

the good old days. federal deficits were .8%. that's .8% of gdp. now our trillion dollars federal deficit amounts to 7.3% of gdp. back then trade was aa contributor to economic growth for the, economy. reunion $500 million at $4.2 billion adjustedio for inflation, and we're running a trade deficit,it trade deficit $536 billion. $536 million. back then social security made up 6.5%. 6.5%. of the federal budget. 6.5%. the decayed and medicare didn't exist back then.

let's compare that to what we are doing now. a 20% of the budget on social security, and then we throw a 21% more of the federal budget for medicare, medicaid, and another 13% for other social programs, food stamps. so that comes up to a whopping 54% of the budget. 54%. forgot to mention this. it is kind of important, isn't it? back than median family income was about $38,000. $38,000. today it is $62,000. we will pretend that looks like

a two and that looks like a six. we haven't done too well, more than half a century in raising a the median income ine this country and that is something he is right about, we do have to fix that. imagine this, it's got a nobel prize. the unions made up 24% read today that number a rather convenient because a reduction by half of 12% right now. it tells which were the country is moving in this nostalgia for a 91% tax rate. i want you to know if ever there

were evidence the nobel prize doesn't equal genius, i think we can start with the number 91. president obama meeting with the most respected ceos. ceos. and they convince them to take the path of prosperity? progressive claims. this is flo. i need you. i feel so alone. but you're not alone. i knew you'd come. like i could stay away. you know i can't do this without you. you'll never have to. you're always there for me. shh! i'll get you a rental car. i could also use an umbrella. fall in love with progressive's claims service.

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lou: president obama meeting with heads of the labor unions today saying the president ismmt committed to higher taxes on top earners. tomorrow a group of ceos from ge, wal-mart can afford, chevron will meet with the president and some of them, members of the campaign to fi fixed the debt

limit, one of the most provocative and economic thinkers, the author of the israel test and new addition today. thank you for being here. >> great to be here. cs. i think rationally so. we are faced with economic calamity if our politics don't work here. what would you put the odds at that busy rationality and effectiveness reemerge from washington, d.c., on the fiscal cliff? >> zero. lou: i thought that. >> if we can keep the current tax rates, we would continue to increase government revenue. increasing 26% under the bush tax rates over the last two years. over the last two years, government revenues have risen

26%, almost a quarter using the buss tax rates. low tax rates bring more revenues, not less venues. lou: do you interpret all of the drama to be a lack of faith? in front of the growth model that has been demonstrated, as you point out, over the past two years. they are really saying the economy cannot grow fast enough to support the government. we will not see revenue increase unless we raise taxes. >> that is correct. the pre-verse thing is you don't get growth if you raise tax rates. in california and several other states that topate is approaching 50% effectively with a 50% top rate, a business have as much incentive to fire

somebody to lower-cost as to hire somebody to increase revenues. lou: it is a high risk experiment, but nonetheless experiment bringing tax levels above 50%, the nation see califa behave as the canary in the coal mine, if you will, when it comes to economic growth and the ability to support an ever-growing government? >> of course. people are just fleeing california. california is what happens to countries that raise their tax rates. entrepreneurs flea and welfare recipients flee in and you have an unsustainable state of affairs, and that is california unsustainable. and silicon valley is america's

greatest asset, the source of all of our technology and ultimately our military power and potential for growth and we are ttling into over the pale, everybody in silicon view is angling for green subsidies and it is a tragedy. lou: that tragedy compounded by the fact the money that has been spent by this administration if you will on venture money like solyndra has been disastrous. >> they are twisting our venture capitalist, turning people like john doerr into a blithering idiot. john seeking government subsidies. he now wants us to support him rather than him to support the country with wonderful new companies like intel. lou: john is being adaptive to new realities.

the primary source of the capital, he is turning to it, i suppose. i want to turn to this book, "the israel test." you take up the issue of the world civilization, importance of israel within it. as capitalist as well as jewish state. you really believe that israel is that strong, that important in the world's future? >> i certainly do. the american economy is heavily dependent on israel today, partly because of the debauchery of silicon valley, but now israel is a crucial source of new technology for apple. all apples, flash tribes, just bought a new israeli company to empower its new technologies. microsoft, cisco, johnson and johnson. the dependent on technologies that come from israel.

they're deeply dependent. obama seems to think that the the tips is more important in israel or turkey is more important. israel is the most important technology force in the world next to the united states, and if we keep on our current path israel will be number one. lou: always good to talk with ink that will help? the m" i on the dot.com. >> in october 2009, taliban fighters attacked an outpost with just 53 troops.. eight of our troops lost theirs lives that day. the author wanted answers on why our troops were left unprepared and unprotected. he joins me next to talk about he joins me next to talk about his new@a

man: we are rolling. all right, mama's gonna bring it home, mama's gonna bring it home. oh, no! man: oh, mom! aah! announcer: challenge your kids to be active and eat healthy. all right, let's see what you can do. let's go. announcer: search "we can" for ideas on how to get healthy together.

who went. lou: the morning of october 3, 2009, 53 troops stationed at a combat outpost located at the bottom three steep mountains in afghanistan were attacked by 400 talibanin insurgents, eight of e troops were killed. in his new book my next guest takes a deeper look at what happened there, and the heroicua actions of our soldiers that morning. joining us now, "abc news" senior correspondent, author of "the new york times" best-selling book "the outpost." great to have you with us. >> is great to see you again.ce lou: have got to believe a white house correspondent for "abc news," the last thinge peoplehought was he will be bringing us a story fromor afghanistan. that is remarkable in and of itself. >> it is precisely because those

at the white house reporting on the war but doing so as we do in washington from the comfort of the north lawn reporting on the pentagon and the white house and the troops upsurge numbers and how this became a project that's really became attached to. lou: you focus on this particular battle, you talk with nearly 225 individuals. how long did that take? >> they range from generals, private, widows, couple insurgents, one of whom i interviewed by skype. it was a big project that every time i thought i wasev done, tak to smitty, i mean ultimately i just had to stop because there

was never going to be a time where i had talked to everybody. lou: you are pursuing one of the toughest explanations, that is how those men can be caught ate that outpost and be the target to be outnumbered so outrageously and incapable of being protected. this is how it started. how is in hospi in the hospitaly newborn son, jack. he was a day-old, out of the corner of my eye i saw the story about the outpost and never heard of combat outpost. coverage along the lines of what would anybody put outpost there? it became a mystery that i needed to solve. why woultd we put our troops in such a vulnerable position? it became what is it like to be so outnumbered in such a

vulnerable decision. the stories of these men and women become remarkable and recover the war, but we don't really cover the war as much as wec should. your show might be an exception to that rule, but don't cover it in general as much as we should. it became so important to me because first of all they are so inspiring. they died because they were doing their jobs, trying to hels a brother provide him with ammunition, save guys pinned down in a humvee. they're down tragic in one sense anc inspirational because thesew really are the best we have to offer in this country and it is great we have these fighting men and women and their families doing this for us even though we

are so disconnected. lou: the outpost, we recommend it highly on the website, which you can click on and do all those. including completed transactions. i didn't know you worked together. >> he was my editor. lou: you are now competing shoulder to shoulder. >> i have known him forever, he was a great editor and he was a funny guy.u: lou: and he tells that he is the greatest. also, you do pretty good

yourself. all the best of luck with the great book. fiscal cliff talks are taking republicans and democrats to take the arguments on the road. why do they think that will help make a deal? make a deal? the "a-team" is the capital one cash rewards card gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone...but her likes 50% more cash. but i'm upping my game. do you want a candy cane? yes! do you want the puppy? yes! do you want a tricycle? yes! do you want 50 percent more cash? no! ♪ festive. [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase plus a 50% annual bonus on the cash you earn. it's the card for people who like more cash. what's in your wallet? it's the card for people who like more cash. i played a round of golf.id in the last five hours? then i read a book while teaching myself how to play guitar; ran ten miles while knitting myself a sweater;

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♪ lou: joining me, lou: joining me now, the "a-team," legal analyst and former clinton advisor, fox newv contributor.ke good to have you all here. have to start with you on this republican recess, as we start to figure what is going on with republicangu party.

it seems stephen hayes and a fet other folks are saying they did a great job in her standing up for them it i'm not saying anything, just asking questions this is a status quo position of the republican party? >> the rank and file out across history -- lou: who is it? >> look, i need a little bit ofk new blood. we do very, very well as we win the government raises and the midterm.e m lou: let me ask a democrat.

>> have to find the talent bring them to do washington. lou: no names and don't mess it up too much. does that wor it work the same r the democrats? >> absolutely because republicans have won five of the last six elections. the never miss an opportunity to miss an opportunity and if they follow the prescription for what will happen is they will cosign themselves with their position. >> i just want to understand this, representing both sides that you both want, right? >> i'm saying the republican party lost, democrats have no mandate and republican don't change they will continue to lose. lou: notice you have to put on me.

i said let's examined apollo the possibility of recess. >> we do very well in the midterms. that is because we don't have to do all this. >> nobody taking the blame anybody one. that is just wrong. i want to hear names on the republican side. where is this great talent? >> jeb bush is a great man. he would do immigration reform, a change in policy, change in personality and a very good man. he is somebody worth having a prominent role in this country. >> i'm looking at the operative level. lou: do you know what in the world republican world stands for which mar?

reagan had social conservatives, religious conservatives, fiscal conservatives. >> a shining city on a hill. he did, we won and will effectivaffectit for the rest o. lou: i'm trying to find the relevant republican party. >> we need to be stronger against our enemies, we need to have lower taxes. lou: we can't strap you up in combat gear and tell you to go get them. >> get class warfare come a lot has to do with media and democrats. lou: what do you think aut hutchinson, senator hutchinson and senator kyle and senator mccain coming up with republicanth dream act?

i think it is excellent. >> i looked through the act, have great caveats, how they will aspire, it is a goodl compromise. >> is a step in the right direction. let's sit down and get this done quickly.l lou: very quickly, please. >> it is something that will not go away. it has to be a step in the righo direction. lou: thank you. let's say thanks. and tell you that is it for us tonight, we thank you for being with us. be sure to be with us tomorrow right here.ght good night from new york.

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